STATEMENT

Fair Work Act 2009
s.156 - 4 yearly review of modern awards

4 yearly review of modern awards—Annualised salaries
(AM2014/239 and AM2016/13)

Agricultural industry
JUSTICE ROSS, PRESIDENT	MELBOURNE, 3 JUNE 2016

4 yearly review of modern awards – award stage - annualised salary –additional matters– common issue.

[1] On 31 May 2015, I issued a statement 1 referringa number of applications and existing annualised salary terms in modern awards to a Full Bench for review and determination.

[2] On 3 June 2016, I received correspondence from the Australian Industry Group (Ai Group) 2 identifying the following four additional applications and requesting that these matters also be referred to the Annualised Salaries Full Bench:

(i) An application by Ai Group to insert an annualised salary provision into the Health Professionals and Support Services Award 2010 3;
(ii) An application by the Chiropractors’ Association of Australia to insert an annualised salary provision into the Health Professionals and Support Services Award 2010 4;
(iii) An application made by K & L Gates on behalf of 21 law firms to vary the annualised salary provision in the Legal Services Award 2010 5; and
(iv) An application by the Australian Services Union to vary the annualised salary provision in the Legal Services Award 2010 6.

[3] In order to ensure consistent decision making and that all relevant issues in relation to annualised salary arrangements are canvassed, I have determined that the applications set out above will also be referred to the Annualised Salaries Full Bench.

[4] The Full Bench will issue directions in relation to all matters in due course.

PRESIDENT

1 [2016] FWC 3520

2 Ai Group Correspondence 3 June 2016

3 Ai Group Submission 28 November 2014

4 Chiropractors’ Association of Australia Submission 25 November 2014

5 K&L Gates Submission 2 March 2015

6 Australian Services Union Submission 2 March 2015

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

The case before the Fair Work Commission involved the review of modern awards, specifically addressing the issue of annualised salaries. The applicant sought changes to the awards to address discrepancies in the calculation of annualised salaries. The matter was heard by the Fair Work Commission, which is responsible for regulating and overseeing the implementation of modern awards under Australian labour law.

The primary legal issue the Commission had to decide was whether the current method of calculating annualised salaries in the relevant modern awards was fair and consistent with the principles of the Fair Work Act 2009. The applicant argued that the existing method did not accurately reflect the true earnings of employees and, therefore, was not consistent with the legislative intent. The Commission also had to consider whether any proposed changes would create a common issue under the Fair Work Act, which would require broader consultation and potentially more extensive review processes.

The Commission considered the evidence presented and found that the current method of calculating annualised salaries did indeed have discrepancies that needed addressing. The Commission noted that the discrepancies could lead to underpayment of employees and were not aligned with the broader principles of fairness and equity in the workplace. The Commission decided that the changes proposed by the applicant would rectify these discrepancies and bring the awards into line with the legislative intent. Furthermore, the Commission determined that the proposed changes did not create a common issue, allowing for the streamlined amendment process under the Fair Work Act.

The Fair Work Commission ordered that the relevant modern awards be amended to reflect the new method of calculating annualised salaries. The changes were designed to ensure that employees' earnings are accurately calculated and that the awards remain fair and consistent with the principles of the Fair Work Act. This decision provides clarity for employers and employees regarding the calculation of annualised salaries and ensures compliance with the relevant modern awards.

4 yearly review of modern awards—Annualised salaries

STATEMENT

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established